Zag Bank Legal Stuff

Here you’ll find all the important details about how our products and services work and the policies, terms and conditions that govern Zag Bank accounts. Find out what you can expect as a client of Zag Bank; how we do business with you, and how we operate.

Zag Bank Legal Stuff

At Zag Bank we always try our best to make your experience easy. So we’ve written down all the important details you need to know about the products and services we offer in one place. We call this our Zag Bank Legal Stuff. It is a good idea to review this document as it contains important details about how our products and services work and the policies, terms and conditions that govern your account. It also details what you can expect as a client of Zag Bank; how we do business with you, and how we operate. Together, they form our agreement with you. By opening and using your Zag Bank account you acknowledge, accept and agree to be bound by Zag Bank’s Terms and Conditions which are detailed here. Please note that any new products and services will be subject to these terms and conditions unless we let you know otherwise.

In these pages you will find information on products and services that you currently use, as well as others that you might be thinking about. This means that some sections may not apply to you right now. In the future if you obtain additional products and services, your use of these products and services will be your acceptance and agreement to the applicable terms and conditions. Should any of the general terms and conditions conflict with the product terms and conditions, the product specific terms shall apply.

From time to time we may change or update these terms and conditions in accordance with applicable law and as noted in Zag Bank’s Terms and Conditions. You can review these terms and conditions anytime on our website zagbank.ca. If you have any questions regarding these terms and conditions, please get in touch with us from to 8AM-12AM ET, Monday to Sunday (times may vary on holidays) at 1-844-Zag-Bank (1-844-924-2265) and one of our Client Services Representatives will be happy to talk with you.

Zag Bank Terms and Conditions

Definitions you need to know:

When we use the terms “Zag”, “we”, “us” and “our” we are referring to Zag Bank.

The words “you”, “your”, “client”, and “account holder” mean each person or client that opens an Account with Zag Bank. If you hold an Account or any other service jointly with another person then “you”, “your”, “client” and “account holder” mean each person who holds your Account.

“Account” means any or all of the accounts you have with Zag Bank including but not limited to the Zag Savings, Zag Tax-Free Savings, Zag RRSP Savings, Zag GIC, Zag Tax-Free GIC and the Zag RRSP GIC accounts.

“Business Days” are Mondays, Tuesdays, Wednesdays, Thursdays, and Fridays unless they are a statutory holiday in Canada. Business Days do not include weekends or statutory holidays which are considered “Non-Business Days”.

“Credentials” include your User ID, password, security questions and any additional security information that you must provide in order to confirm your identity when using one of our Electronic Services.

“Zag Online” refers to our online banking services at zagbank.ca that you can access via a web browser on your mobile browser.

Terms and conditions applicable to all Accounts & Services:

All amounts are in Canadian dollars unless otherwise stated.

Your account will be considered open and active only after the account opening process and identity verification have been completed and we have received your first deposit.

Zag Bank is a member of the Canada Deposit Insurance Corporation (CDIC). A deposit with Zag Bank is eligible for CDIC coverage, subject to CDIC rules and regulations. CDIC deposit insurance covers up to $100,000 (principal and interest combined) per depositor, subject to maximum coverage. Visit CDIC.ca for more details.

Consent

Zag Bank will ask you to confirm your acknowledgement and agreement to these terms and conditions when you open your first account with us. By agreeing to the terms and conditions you are also acknowledging your understanding and agreement with Zag Bank’s Privacy Policy which is posted online at zagbank.ca.

Changes to Terms and Conditions

Zag Bank may change these terms and conditions from time to time without prior notice unless such notice is required by law. Your use of your Account or Services will be your consent to the most current Zag Bank Terms and Conditions. Should Zag Bank send you a notification of changes, this notification will be provided via email or will be posted on our website at zagbank.ca.

Termination

We reserve the right to terminate, freeze or withdraw your Account for any reason at our absolute discretion and without notice if, at any time, we have reasonable grounds to believe the account is being used for any unlawful or improper purpose, is the subject of fraud, or is being operated in a manner unsatisfactory to us, contrary to our policies or contrary to these terms and conditions. You also agree that we may terminate your Account at our absolute discretion with notice at any time. Upon termination your investment amount will be withdrawn from your Account and paid to the External Account from which your initial investment was made and you shall have no further rights or interest in the Account. Upon completion of the termination, any personalized content made available via our Electronic Services, including your account history and transactions, will no longer be available in Zag Online and Zag Mobile. Please note that tax forms for that tax year will be mailed during the first three (3) months of the next year. So, please get in touch with us at 1-844-Zag-Bank (1-844-924-2265) if you change your mailing address after termination.

Zag may terminate your access to our Electronic Services and delete or relocate any content made available via our Electronic Services, without advance notice. This may be done for any reason, including in reaction to illegal or unlawful behaviour, lack of use or in situations where Zag has good reason to believe that you have violated any term, condition or agreement between you and Zag. Zag will not be liable to you or to any third party for the termination of your Credentials or access privileges.

Limitation on Liability

Zag cannot guarantee that all the information displayed on the website or mobile application is accurate, complete or current at all times. For the most current and up to date information, please get in touch with us at 1-844-Zag-Bank (1-844-924-2265). Zag is not responsible for the consequences of any inaccurate information or for any damage sustained as a result of using such information. Zag can change, withdraw or terminate this information at any time without notice.

Zag is not responsible and will not be liable to you or anyone else for:

any damages arising out of or in connection with our Electronic Services; or

any damages that you sustain when transmitting or receiving confidential or sensitive information in connection with Zag Bank; or

your ability or inability to access or use Electronic Services; or

any action or decision made by you in reliance on the Electronic Services; or

any errors in or omissions from the Electronic Services; or

any damage sustained by your Electronic Device or any loss of data that may result when downloading material; or

any unauthorized use or reproduction of the Electronic Services.

The information contained in our Electronic Services is not intended to provide specific legal, accounting, financial, or tax advice and should not be relied upon in that regard.

You agree that notifications, electronic and paper delivery of documents may be delayed, lost or inaccurate due to many factors including technical issues. Subject to the appropriate governing laws, Zag Bank is not responsible and will not be liable to you or anyone else for any direct or indirect damages arising out of your use or inability to use or access notifications and documents due to any cause. You acknowledge that notifications and documents including faxes and emails may be lost, intercepted or altered by others and accept the associated risks.

Joint Accounts

For a joint Account, each account holder chooses his or her own Credentials. Any joint account holder may conduct transactions with any of the Accounts that have been designated as joint Accounts. In the event where one joint account holder requests a transaction, it will be executed without express authorization of any other joint account holder. All obligations arising from these Account terms and conditions are the responsibility of both individual and joint account holders. Should any joint account holder die who is a resident of any province or territory within Canada (excluding Quebec), any positive balance may be withdrawn or made payable to the surviving joint account holder(s) and you hereby assign the balance of any jointly held bank Account to the surviving account holder(s) in the event of your death. For Quebec residents only, any positive balance shall be settled in accordance with the estate of the deceased joint account holder.

The explicit consent of the other Account holder(s) is required for the opening of any subsequent joint Account with the same account holder(s). This consent may be provided to us either in writing or via electronic means specified by us at our discretion.

We may disclose your Account information to a joint account holder, including information about the Account prior to it becoming a joint Account.

Fees, Limits and Holds

Fees

Zag Bank does not charge fees on the Zag Savings, Zag Tax-Free Savings, Zag RRSP Savings, Zag GIC, Zag Tax-Free GIC and Zag RRSP GIC products. Please refer to zagbank.ca for details of all of the transactions that you receive for free. Fees are subject to change at any time.

Zag Bank does not have any control over third-party fees. For example, you are responsible for any fees charged by your Internet provider, mobile service provider or data provider to access and use our Electronic Services via the web, phone or mobile phone networks. Please check your internet and/or mobile services provider to see if they charge for incoming email, text messages, or other notifications. Zag is not responsible for fees levied by your service providers.

You will be responsible for any fees, chargebacks, overdraft charges or other charges from any other financial institution that may arise from the refusal of cheques presented or other transactions.

Limits

Some transactions may also be subject to daily withdrawal limits. The daily transaction limit for deposits and/or withdrawals from or to your Account using your External Account is $100,000. For amounts exceeding $100,000 please contact Client Services at 1-844-Zag-Bank (1-844-924-2265) for assistance.

Using our SnapCheque™ application, there is a $5,000 deposit limit per cheque and a total daily maximum of $10,000 that can be deposited.

Zag limits the number of External Accounts to five (5).

Zag Bank can limit the amount a client can have on deposit with Zag Bank to a maximum of five (5) million dollars.

Holds

Bank to Bank Transfers
Funds transferred between Zag Bank and another bank or financial institution may be subject to an administrative hold of up to five (5) Business Days.

SnapCheque Holds and Processing Times
The SnapCheque service is available 24/7. As soon as we receive the Image for the Cheque you will receive a message confirming that the deposit is pending or processed. The deposit will be reflected in your account balance once the Cheque has been processed. Your SnapCheque deposit may be restricted based on your account access limits or held in accordance with Zag’s hold policy of up to five (5) business days.

Interest

Your Zag interest is calculated daily, at the end of the day, and paid monthly into your account on the last business day of the month. Interest will be calculated as soon as the funds are received by Zag Bank and deposited in your Zag saving account. The applicable interest rate is determined on the date on which Zag Bank deposits your funds to your Zag savings account.

The interest rate on your Zag savings account is subject to change at any time without prior notice at our sole discretion.

Closing your Account

You can close your Zag Savings, Zag Tax-Free Savings and Zag RRSP Savings accounts at any time by contacting us at 1-844-Zag-Bank (1-844-924-2265). Once your Account is closed, account information including history and transactions are no longer available in Zag Online and Zag Mobile banking. Please note that tax forms will be mailed during the first three (3) months of the next year. So, please get in touch with us at 1-844-Zag-Bank (1-844-924-2265) if you change your mailing address after you close your Account. Zag will inform you of the cancellation terms, conditions and fees (if any) of the various Services to which you have subscribed with Zag.

For your Zag Bank RRSP Savings Account, refer also to the Declaration of Trust (Exhibit 1).

For your Zag Bank Tax-Free Savings Account refer also to the Declaration of Trust (Exhibit 2).

Zag Bank agrees to repay the principal amount of the deposit, with interest, in accordance with the investment details which you (the registered holder of this GIC) have just reviewed in the application process and also in accordance to the following terms:

Interest

For 1- to 5-year term Zag GICs, interest is annualized, calculated daily, compounded monthly* and paid depending on the interest payment option selected by you. You have the option to have interest paid out to your Zag Savings Account (or to the External Account from which the funds originated if you don’t have a Zag Savings Account) either monthly, semi-annually, annually or at maturity (*if you choose the monthly payment option, interest is not compounded and becomes calculated as simple interest).

For the Zag Tax-Free GIC and Zag RRSP GIC, interest is annualized, calculated daily, compounded monthly and paid at maturity for 1- to 5-year terms.

For 6- and 9- month term GICs, interest is calculated daily and paid at maturity to your Zag Savings Account (or the External Account from which the funds originated if you don’t have a Zag Savings Account). Interest is calculated as simple interest on 6- and 9- month GICs and therefore is not compounded.

The applicable interest rate is determined on the date on which Zag Bank receives your funds.

Transferability

The GIC is not transferable.

Redeemability

The GIC is not redeemable before maturity.

Renewal Terms

Zag Bank will automatically renew the GIC into the same term at the posted rate, unless you provide Zag Bank with different instructions before the maturity date. You can change your new GIC parameters by contacting Zag Bank at 1-844-Zag-Bank (1-844-924-2265).

Thirty (30) days before your Zag GIC is set to mature, you will receive an email requesting that you provide your renewal instructions.

Closing your Account

You can close your Zag GIC, Zag Tax-Free GIC and Zag RRSP GIC once the GIC matures. Once your Account is closed, account information including history and transactions are no longer available in Zag Online and Zag Mobile banking. Please note that tax forms will be mailed during the first three (3) months of the next year. So, please get in touch with us at 1-844-Zag-Bank (1-844-924-2265) if you change your mailing address after you close your Account. Zag will inform you of the cancellation terms, conditions and fees (if any) of the various Services to which you have subscribed with Zag.

For your Zag Bank RRSP GIC Account refer also to the Declaration of Trust (Exhibit 1).

For your Zag Bank Tax-Free GIC Account refer also to the Declaration of Trust (Exhibit 2).

Terms and conditions specific to Electronic Services:

Obtaining Your Credentials

Zag offers a wide range of banking and financial services that you can access through Zag Online and Zag Mobile. Access to our Electronic Services is free of charge but you will need to obtain Credentials from Zag in order to use certain features and functionalities.

To access and use certain features and Services through our Electronic Services, you will be required to obtain Credentials from Zag which consists of the use of one or more of the following:

When you use your Credentials, you agree that all actions taken by you (such as clicking on an “OK”, “Next”, “Continue” or “Approve” button) in connection with the content shown to you through Zag’s Electronic Services are the legal equivalent of your written and signed instructions to Zag.

Zag will be under no obligation to confirm the actual identity or authority of the person using Credentials.

You are not responsible for any unauthorized use of your Credentials occurring after notifying Zag by phone at 1-844-Zag-Bank (1-844-924-2265). (Please see the “Your Responsibilities” section below).

Your Responsibilities

Credentials

Zag will adhere to the highest security measures on our sites and applications and we will take every precaution to protect your privacy and your confidential information (please refer to our Privacy and Security section on zagbank.ca for details). You are responsible for protecting the confidentiality of your Credentials. You agree to keep your Credentials safe and secure, and:

a) you will not disclose your Credentials to anyone;
b) you will choose Credentials that do not include information someone could know about you (such as your birth date, phone number, social insurance number, or address) or that could be easily guessed (such as your postal code, family birthdays or names of pets);
c) you will select a unique password and will not use it for other sites or services;
d) you will change your password on a regular basis. Zag will require a password change at least annually for your security. You will not keep any written records of your Credentials;
e) you will take all necessary steps to keep your Credentials confidential such as shielding your Electronic Device when entering your password and speaking quietly and privately on the phone with our Client Services Representatives;

Please refer to the Privacy and Security section on zagbank.ca for more details.

Call us immediately if any of your Credentials have been stolen, misused or may have become known to another person. Please get in touch with us at 1-844-Zag-Bank (1-844-924-2265). You will not be responsible for any unauthorized use of your Credentials after notifying us by phone and speaking with a Client Services Representative.

Securely Connecting to Zag

Electronic Devices you use to access our Electronic Services may be vulnerable to viruses or online attacks designed to intercept or alter information, including your confidential information. To protect yourself, you must take all reasonable precautions, including ensuring that any Electronic Device you use to access our Electronic Services has an up-to-date anti-virus program, anti-spyware program and, if applicable, a firewall. In addition, log out before closing the Electronic Services in order to prevent unauthorized access to your information.

Email Security

Zag offers private and secure messaging on our website through the Messages section of Zag Online where you can securely ask questions and read responses from our Client Services Representatives about your Account. You can see any emails we have securely sent to you and that you have sent to us.

Zag does not have control over the privacy of your email communications with us through your personal email service (such as Gmail, Rogers, Yahoo, etc.). We strongly recommend that you do not include private or sensitive information (such as account number, passwords, balances, etc.) in your emails to us using your personal email services. Zag will not be responsible for any damages you may suffer if you send confidential or sensitive information to us through your personal email services.

Licenses

Zag grants you a non-exclusive and non-transferable license for its Electronic Services. This license authorizes you to use the Electronic Services for the purpose of accessing any Service, feature, functionality, content and/or information made available by Zag using an Electronic Device. Zag has no obligation to provide any training, maintenance, or other assistance for the Electronic Services. Any attempt (successful or not) to hack, breach, modify or otherwise access the source code or to breach any security feature of the Electronic Services may result in immediate termination and legal action.

Links to Third-Party Sites

Zag’s Electronic Services include images of and links to third-party sites. The linked sites are not under the control of Zag and Zag is not responsible for the content of any linked site. Zag is providing these links only for your convenience and the inclusion of a link does not imply endorsement of the linked site by Zag. Zag will not be responsible for any losses suffered in visiting these sites.

Jurisdiction

Zag Bank’s website will be governed by and construed in accordance with the applicable laws of Canada.

Transaction Posting

Zag’s Electronic Services are available 24 hours a day and 7 days a week. Any transaction between Zag Accounts will be posted on the same Business Day if the transaction is completed before the 12 midnight Eastern Time cut-off. Transactions completed after the cut-off will be reflected on the next Business Day. If you complete a transaction on a Non-Business Day, it will be posted to your Account on the next Business Day. Transactions between Zag and another bank or Financial Institutions should appear in your account within three (3) Business Days.

Alerts

Zag offers alerts, free of charge, for some of our Electronic Services in the alerts section of Zag Online and Zag Mobile. In this section you can voluntarily subscribe to or unsubscribe from all general alerts. As a courtesy, Zag may also send system and security alerts to you by email, text message, through the Message section of Zag Online, or by posting on our corporate website zagbank.ca.

Please check your Internet and/or Mobile services provider to see if they charge for incoming email, text messages, or push notifications. Zag is not responsible for fees levied by your service providers. Zag is also not responsible for any message transmission or delivery error made by your mobile or Internet service provider.

Mobile Services

The terms and services of Zag’s Electronic Services extend to both its Zag Online and Zag Mobile application. However, the Zag Mobile application has the following additional terms that you must keep in mind:

You must be enrolled with Zag Electronic Services and have set up your Credentials in order to use Zag Mobile.

Zag Mobile is a streamlined version of our Zag Online site and does not include all of the Services, features, functionality, content or information found on Zag Online.

You are responsible for any fees charged by a service provider that you might incur by accessing Zag Online and Zag Mobile.

SnapCheque Deposit

Zag’s Electronic Cheque Deposit Service (SnapCheque) is available through Zag Mobile.

SnapCheque allows you to make deposits to your Account(s) by taking a picture of the front and back of cheques (“Image”) with an Electronic Device and sending the Image and associated deposit information to us via Zag Mobile.

You can only deposit cheques via SnapCheque while you are physically located in Canada and via Canadian devices and networks.

You acknowledge that Zag will not be liable for any losses or liabilities that you may suffer as a result of your use of the SnapCheque service, including if the feature is not available for any reason or if Zag chooses to refuse a SnapCheque for any reason.

Types of Deposits

You may Image and deposit any of these original, paper items (“Cheques”) issued by a bank located in Canada and payable in Canadian currency:

cheques

money orders

bank drafts

convenience cheques

certified cheques

You may not Image and deposit any of the following:

Cheques that are not made payable to you directly or that have been endorsed over to you.

Cheques which have been altered, or which you know or suspect, are fraudulent.

Cheques drawn on a financial institution located outside Canada.

Photocopies, PDFs or other printouts of Cheques.

Post-dated or stale-dated Cheques.

Cheques that have already been deposited through SnapCheque or to another Financial Institution.

Zag reserves the right to reject any Cheque transmitted via SnapCheque, at our discretion. You will be responsible for any fees, chargebacks, overdraft charges or other charges that may arise from the refusal of the Cheques.

Keeping Originals

You agree to retain Cheques deposited via SnapCheque for at least five (5) Business Days from the date of deposit in case we ask you to re-transmit an Image.

Terms and conditions related to the consent for delivery of electronic documents:

At Zag Bank, we’re committed to making things easier by delivering Accounts and Services to you electronically - online and on your phone. This includes sending out the documents you need to bank with us in electronic format instead of paper as outlined below.

Your Consent

You consent to the electronic delivery of documents and other information related to the Accounts and Services offered by Zag Bank. Electronic delivery includes but is not limited to sending documents and information through the Message section of Zag Online, fax, email, text message, or by posting on our corporate website zagbank.ca. Documents include but are not limited to:

Statements;

Any other confirmation, notice or information that we are required by law to provide you in writing relating to your Account and the Services provided by Zag Bank, including but not limited to the Tax Receipts required for filing your income tax return.

This Consent applies to any and all of your Accounts and the Services provided by Zag Bank and shall take effect upon your agreement to the terms and conditions in Zag Bank Legal Stuff.

You acknowledge that consenting to receive documents by electronic means is an integral part of your Zag Account and the Services you receive from Zag Bank and that you may not withdraw your consent for electronic delivery of documents except in instances where Zag Bank is required by law to provide alternative delivery methods. On an exception basis, you may choose to receive your Tax Receipts in paper format. If you wish to do so, please contact Client Services at 1-844-Zag-Bank (1-844-924-2265). Zag Bank may in our sole discretion reserve the right to provide you with the documents by paper delivery for any reason we deem appropriate including but not limited to our belief that you may not have received the documents by electronic delivery and our inability to deliver the documents to you electronically. Any documents sent by paper delivery will be sent to you at mailing address that we currently have on file for your Account.

Delivery of Electronic Documents

When we deliver a document electronically, we will do so by making it available to you through Zag Online, accessible to you after you have been identified electronically. We will usually post a message to the Message section of Zag Online, email or text you to notify you that the document is available. Sometimes we may present a document to you as part of a transaction that is taking place on your Account or related to a Service offered by Zag Bank.

We may also send you alerts, notifications and other communications by email or text message. You agree that receipt of these notifications, alerts and other communications including email from Zag Bank is a fundamental part of your Account.

Statements are available for download from the Account tab of Zag Online for applicable active Accounts.

Your Responsibilities

You agree to review the documents that we send you electronically within thirty (30) days of receipt and you acknowledge and confirm that you have the necessary skills and resources to do this even though the technical and security requirements to access Zag Online, Zag Mobile and other Electronic Services and view the documents may change from time to time. You also confirm that you will let us know immediately of any changes to your contact information including email address.

Resolving your complaints or concerns:

If you have any issues with your Account(s) or Services or to find out more about our dispute settlement procedure, please get in touch with us at 1-844-Zag-Bank (1-844-924-2265). One of our Client Services Representatives would be happy to assist you. The information is also available on our website zagbank.ca.

Other stuff:

Copyright

All information on Zag’s Electronic Services is protected by copyright including the content, text, information, images, and videos. You may only copy its content for your own personal use. You cannot redistribute, reproduce, republish, store in any medium, retransmit, or modify the information on our Electronic Services for commercial purposes without the written permission of Zag Bank, or make public use thereof without crediting the source.

Trademarks

All trademarks and logos (including certain names, words, titles, drawings, illustrations and icons) appearing on Zag’s Electronic Services are trademarks or registered trademarks of Zag or third parties. Any use of these trademarks is strictly forbidden without the owner's written authorization. Any unauthorized downloading, retransmission, or other copying or modification of trademarks and/or site content may be a violation of federal or other laws applying to trademarks and/or copyrights and could subject the copier to legal action.

Exhibit 1

Zag Bank Retirement Savings Plan

Declaration of Trust

WHEREAS, the annuitant wishes to establish a Zag Bank Retirement Savings Plan (herein referred to as the "plan"), in accordance with the Income Tax Act (Canada) and the income tax legislation, if applicable, of the province designated in the address of the annuitant (herein collectively referred to as the "Applicable Tax Legislation");

WHEREAS, Desjardins Trust Inc., a trust company existing under the laws of Canada, is authorized to offer its services to the public as trustee (herein referred to as the "Issuer");

WHEREAS, the Issuer hereby accepts the office of trustee on behalf of the annuitant who has signed the Application Form for a Zag Bank Retirement Savings Plan;

WHEREAS, when applicable, for the purposes hereof, the term “dealer” refers to an individual or entity acting (or representing that it acts) in connection with the annuitant’s plan as the annuitant’s advisor, broker or dealer, or on behalf of the annuitant’s investment advisor, broker or dealer. The annuitant’s acknowledges that a dealer is his agent and when acting (or representing that it acts) as a dealer is not the agent of the Issuer or any of its affiliates. The Issuer is entitled to accept and act on any notice, authorization or other communication that it believes in good faith to be given by the annuitant’s dealer on his behalf.

WHEREAS, for the purposes hereof, the terms "annuitant", "maturity", "retirement income", "spouse" and "common-law partner" shall have the meaning assigned to them in the Applicable Tax Legislation.

IT IS THEREFORE AGREED between the annuitant and the Issuer as follows:

Clause 1. The plan complies with the requirements of the Applicable Tax Legislation and the Issuer shall be responsible for administering the plan and undertakes to register the plan with the Canada Revenue Agency and, if applicable, with the government of the province designated in the address of the annuitant.

Clause 2. The Issuer has appointed Zag Bank as its agent to perform certain duties relating to the operation of the plan. The Issuer acknowledges and confirms that ultimate responsibility for the administration of the plan remains with the Issuer.

Clause 3. The annuitant or his or her spouse or common-law partner may make periodic payments (herein referred to as the "Contributions") to the plan in lawful money of Canada.

Clause 4. The assets of the plan shall, at all times, be held by the Issuer or a representative of its choice in a separate account for the annuitant.

Clause 5. The Issuer shall, on written application made by the annuitant or his or her spouse or common-law partner, repay the applicant from the proceeds of the disposition of the assets in the plan, any amount required to reduce the taxes which would otherwise be payable under Part X.1 of the Income Tax Act (Canada).

It is the responsibility of the annuitant or of his or her spouse or common-law partner, as applicable, to ensure that the amount of his or her Contributions does not exceed the maximum permitted deduction under the Income Tax Act (Canada).

The Issuer shall not be required to verify the total amount of the Contributions made by the annuitant or his or her spouse or common-law partner and the annuitant or his or her spouse or common-law partner shall assume responsibility for any consequences resulting from the provisions of section X.1 of the Income Tax Act (Canada) or which could result from the realization of all of the assets of the plan, including any penalty charged in the event of redemption prior to maturity or for any loss suffered by the annuitant.

Clause 6. Prior to maturity of the plan, no benefit shall be paid to the annuitant other than a payment to the annuitant or a refund of premiums.

Clause 7. After maturity of the plan, no benefit shall be paid to the annuitant except in the form of retirement income, of full or partial commutation of retirement income under the plan or in respect of a commutation provided for in the Income Tax Act (Canada).

Clause 8. Payment of retirement income to the annuitant shall not be made except in the form of equal payments to be made at periodic intervals not exceeding one year, until such time as there is only one payment arising from the full or partial commutation of retirement income and, thereafter, where commutation is partial, in the form of equal payments to be made at periodic intervals not exceeding one (1) year.

Clause 9. No periodic payments shall be made under an annuity in a year after the death of the first annuitant where the total payments exceed the payments to be made in a year prior to his or her death.

Clause 10. No retirement income under the plan may be assigned in whole or in part.

Clause 11. No premium shall be paid after maturity of the plan.

Clause 12. No advantage (except as provided for in the Applicable Tax Legislation) that is conditional on the existence of the plan shall be granted to the annuitant or to a person with whom he or she was not dealing at arm's length, as defined in the Applicable Tax Legislation.

Clause 13. The plan will mature at the end of the year in which the annuitant reaches the age limit provided in the Income Tax Act (Canada). At maturity of the plan, if the annuitant has not given instructions to the Issuer, the Issuer will deregister the plan and the annuitant will receive a lump-sum cash payment. Income tax will be withheld by the Issuer.

Clause 14. Each annuity payable under this plan which would otherwise become payable to a person other than an annuitant under the Plan must be commuted.

Clause 15. The Issuer is entitled to be reimbursed from plan assets for all charges and expenses incurred in connection to the plan, including any taxes, interest or other penalties required to be paid out of the plan for any reason whatsoever (not including any taxes, interest, or penalties to be paid by the Issuer, which cannot be taken from plan assets according to the Applicable Tax Legislation).

Clause 16. Should the annuitant fail to pay the fees, charges, overdraft, taxes, etc., referred to in the preceding clause, the Issuer shall, upon sixty (60) days' prior written notice, be entitled to dispose of the assets held in the plan and is hereby specifically authorized to realize the said assets at such price and on such conditions as it shall deem advisable. The annuitant shall be accountable to the Issuer for all fees, charges, expenses, etc., that exceed the assets of the plan.

Clause 17. An annuitant who signs an Application Form must declare his or her age, which declaration shall be considered an undertaking by such annuitant to provide any further proof that may be subsequently required.

Clause 18. The Contributions of the annuitant or his or her spouse or common-law partner, as well as the interest, benefits or gains relating thereto, shall be invested by the Issuer in accordance with the instructions of the annuitant. All proposed investments and documents pertaining thereto must be in accordance with the requirements of the Issuer, and may be modified from time to time. However, the annuitant shall be responsible for the said investments and their liquidity.

Clause 19. Should the annuitant expressly waive to provide instructions or, without waiving, should he or she be unable to state his or her wishes in the event of an emergency, the Issuer may, but shall not be required to:

(a) sell, alienate or otherwise dispose of all assets entered to the credit of the annuitant, on such conditions and at such price as it shall deem advisable;

(b) invest, as it shall deem appropriate, all moneys entered to the credit of the annuitant in any kind or class of investment, notwithstanding the laws of all jurisdictions governing the investment of the assets of a third party.

Clause 20. The Issuer, unless otherwise instructed, may but shall not be obliged to seek advice from any professional or financial consultant, when it deems it appropriate, and pay the consultant's fees from the assets held on behalf of the annuitant.

Clause 21. Except in the event of negligence on its part, the Issuer shall not be liable for any act or omission, nor for any loss or depreciation in the value of the investments.

Clause 22. Without limiting the general nature of the preceding paragraph, it is the responsibility of the annuitant to select the investments of the plan and to determine if the Issuer should acquire, sell, or retain a specific investment for the plan. The Issuer is not responsible for any advice that the annuitant obtains from a dealer or any other source.

The Issuer shall exercise the care, diligence and skill of a reasonably prudent person to minimize the possibility that the plan holds a non-qualified investment. The Issuer will not be responsible for any loss due to the sale or assignment of any asset forming part of the plan, including any penalties resulting from redemption prior to maturity.

Clause 23. The Issuer may resign as trustee and be discharged from all obligations and responsibilities hereunder, upon giving three (3) months' prior written notice to the annuitant, or upon shorter notice as deemed acceptable by the annuitant. The Issuer may appoint as successor, under the terms hereof, any corporation qualified to act as trustee in accordance with the provisions of the Income Tax Act (Canada) and, if applicable, of any provincial income tax legislation. Such appointment shall take effect on the date specified in the instrument of appointment whereby the said corporation is appointed successor trustee and accepts the appointment, such date to be fixed no later than the sixtieth (60th) day after written notice of the appointment has been sent to the annuitant.

On the effective date of the appointment, the Issuer shall transfer the moneys or securities of the plan to its successor. It is, however, understood that the Issuer shall not be obliged to effect the prepayment of the said securities before transferring them. Furthermore, the Issuer shall provide all the information and documents required for its management and registration, in accordance with the provisions of the Income Tax Act (Canada) and, if applicable of any provincial income tax legislation. Effective on the date of such appointment, the successor trustee shall assume all the functions and responsibilities of the Issuer, which shall be discharged from all obligations and responsibilities of Issuer hereunder.

The Agent, upon giving the Issuer at least ninety (90) days written notice, may remove the Issuer as the trustee of the plan, provided that a successor trustee has been appointed by the Agent in writing.

The annuitant may, in the same manner, relieve the Issuer of its functions and name a qualified successor in accordance with the provisions of the Income Tax Act (Canada) and, if applicable, of any provincial income tax legislation. In such a case, the Issuer must transfer the moneys and securities in the plan to its successor. It is, however, understood that the Issuer shall not be obliged to effect the prepayment of the said securities before transferring them.

Clause 24. The Issuer may amend the present plan to ensure that it complies at all times with the conditions of registration under the Applicable Tax Legislation.

Furthermore, the Issuer may, at its option, amend the terms and conditions of the present plan, from time to time, but undertakes to send thirty (30) days' prior written notice thereof to each annuitant before applying said amendment(s).

Zag Bank RSP 168-138

Desjardins Trust Inc.

Zag Bank Tax-Free Savings Account

Declaration of Trust

WHEREAS the holder wishes to establish a Tax-Free Savings Account (hereinafter referred to as the “account”) under the Income Tax Act of Canada and, as applicable, of the province indicated in the address listed for the holder (hereinafter referred to as “Income Tax Legislation”);

WHEREAS, Desjardins Trust Inc. (hereinafter referred to as the “Issuer”), a trust company existing under the laws of Canada, is authorized to offer its services to the public as a trustee;

WHEREAS, the Issuer hereby agrees to act as trustee for the holder, who has signed an application form for a Zag Bank Tax-Free Savings Account;

WHEREAS, when applicable, for the purposes hereof, the term “dealer” refers to an individual or entity acting (or representing that it acts) in connection with the holder’s account as the holder’s advisor, broker or dealer, or on behalf of the holder’s investment advisor, broker or dealer. The holder acknowledges that a dealer is his agent and when acting (or representing that it acts) as a dealer is not the agent of the Issuer or any of its affiliates. The Issuer is entitled to accept and act on any notice, authorization or other communication that it believes in good faith to be given by the holder’s dealer on his behalf.

WHEREAS, the parties agree that this Contract shall be considered a trust for the purposes of the Income Tax Act (Canada);

THE FOLLOWING IS AGREED between the holder and the Issuer:

Section 1. The account is maintained for the exclusive benefit of the holder, determined without regard to any right of a person to receive a payment from the account on or after the death of the holder.

Section 2. Where there is a holder, the account prohibits anyone that is neither the holder nor the Issuer of the arrangement from having rights under the arrangement relating to the amount and timing of distributions and the investing of funds.

Section 3. Only the holder may make contributions to the account.

Section 4. Distributions may be made in order to reduce the amount of tax otherwise payable by the holder under Part XI.01 of the Income Tax Act (Canada).

Section 5. At the direction of the holder, the Issuer shall transfer all or any part of the property held in connection with the account, or an amount equal to its value, to another tax-free savings account of the holder.

Section 6. The present arrangement prohibits the trust from borrowing money or other property for the purposes of the account.

Section 7. The account complies with prescribed conditions.

Section 8. The account ceases to be a tax-free savings account upon the earliest of the following times:

a) the time at which the last holder of the arrangement dies
b) the time at which the account ceases to be a qualifying arrangement
c) the earliest time at which the account is not administered in accordance with the registration conditions.

Section 9. The holder certifies that he is at least 18 years of age.

Section 10. The Issuer has appointed Zag Bank as its agent to perform certain duties relating to the operation of the account. The account complies with the Income Tax Act (Canada) requirements and the Issuer is ultimately responsible for administering the account and submitting the election to register the account with Canada Revenue Agency and, if applicable, the government of the province indicated in the address listed for the holder.

Section 11. The holder may make remittances in regular instalments (hereinafter referred to as “Contributions”) to the Issuer, in Canadian legal tender. The holder’s Contributions, as well as all interest, profits or gains attributable thereto, shall be invested by the Issuer according to the instructions of the holder. All the investments proposed and the documents in respect thereof must comply with the Issuer’s requirements, which may be revised from time to time. However, the holder shall be responsible for said investments and their liquidity. The Issuer is not responsible for any advice that the holder may obtain from a dealer or any other source.

Section 12. It is incumbent upon the holder to ensure that the amount contributed in this way does not exceed the maximum permitted by the Income Tax Act (Canada). The Issuer, upon written request by the holder, shall pay to the latter, from the proceeds of the account’s asset disposition, any amount necessary to reduce the tax that would otherwise be payable by the holder under Part XI.01 of the Income Tax Act (Canada). The Issuer shall not be required to verify the total amount of contributions made by the holder and only the holder shall be responsible for any consequences that may arise from the terms of Part XI.01 of the Income Tax Act (Canada) or that would result from the liquidation of all the assets in the account, including any penalty imposed resulting from early withdrawal or any loss suffered by the holder.

Section 13. The Issuer shall maintain a registry and record the cumulative balance of contributions, income and assets held on behalf of the holder.

Section 14. The Issuer shall send the holder an annual report.

Section 15. If permitted by applicable provincial legislation, the holder may designate a survivor holder or a beneficiary to receive the proceeds payable under the provisions of the account. This designation may be amended or revoked without the consent of the survivor holder or the beneficiary and only by way of a written document or instrument, dated and signed by the holder. The form and content of said amendment or revocation shall be acceptable to the Issuer and shall identify the account specifically.

Any designation shall come into force on the date it is received by the Issuer. If more than one designation is received by the Issuer, the Issuer shall consider only the designation, duly signed by the holder which has the most recent date. In certain provinces and territories this designation may not be revoked or changed automatically as a result of a future marriage or a marriage breakdown and a new designation may be required. It is the holder’s sole responsibility to get appropriate information regarding this matter and to make the appropriate amendments, as needed. The Issuer makes no representation and cannot be held responsible in the event that any designation of a survivor holder or designation of beneficiary signed by the holder with respect to the account is deemed invalid.

Section 16. Upon the holder’s death, upon of receipt of evidence satisfactory of the Issuer of such death and subject to the Income Tax Legislation, the Issuer shall dispose of the assets in the account, and, after deducting any applicable tax, costs of such disposition, fees or any other amount payable hereunder, the Issuer shall pay in a lump sum the net proceeds of such disposition to the Issuer’s estate. Notwithstanding the foregoing, in cases permitted by the Income Tax Legislation, the Issuer may transfer the assets in the account to one or more persons entitled thereto. No such payment of transfer shall be made unless and until the Issuer receives releases and other documents as it may reasonably require.

Section 17. No advantage (except as provided in the Income Tax Act [Canada]) stemming from the existence of the account shall be granted to the holder or to any person who is not dealing at arm's length with said holder, as defined by the Income Tax Act (Canada).

Section 18. The Issuer is entitled to be repaid, from the assets in the account, for all account-related costs and expenses incurred, including but not limited to any and all fines and interest that the account may have to pay for any reason whatsoever (not including any fines and interest to be paid by the Issuer, which cannot be taken from the account assets according to the Income Tax Legislation). The holder hereby authorizes the Issuer to deduct the necessary amounts for these purposes from the deposits and new contributions made to the account, or else the Issuer shall then be entitled to sell the assets held in the account and is hereby specifically authorized to liquidate said securities at the prices and conditions it deems appropriate. The h older shall be accountable to the Issuer for all costs, charges, fees, etc. which exceed the amount of the assets in the account.

Section 19. Any holder who signs an Application Form must state his/her age and social insurance number; this statement shall be considered the holder’s agreement to provide any additional proof that may later be required.

Section 20. Except in the case of negligence by the Issuer, said Issuer shall not be held liable for any act or omission, nor any loss or depreciation in the investments’ value.

Section 21. The Issuer of the account shall act with the care, diligence and skill that a prudent person would use, in order to minimize the likelihood for the account to contain non-qualified investments.

Section 22. Should the holder permanently forgo issuing instructions or else find that he/she is no longer able to express his/her wishes and the situation is urgent, the Issuer may, but shall be under no obligation to:

a) Sell, alienate or otherwise dispose of any asset registered to the Holder, according to the terms and prices it deems appropriate.
b) Invest, as it deems appropriate, any sums of money registered to the holder in any type or category of investment, notwithstanding the laws of any and all jurisdictions concerning the investment of another person’s property.

Section 23. Unless it receives instructions to the contrary, the Issuer may, but shall be under no obligation to seek advice from any professional or financial advisor, whenever it deems it appropriate to do so, and pay said advisor’s fees from the assets held on behalf of the holder.

Section 24. The Issuer may resign from its duties and be released of any other obligation and responsibility hereunder by giving the holder sixty (60) days’ written notice.

The Issuer may appoint as successor to the terms herein any financial establishment authorized to act as Issuer under the Income Tax Act (Canada) and, if applicable, any provincial income tax legislation. This appointment shall be effective as of the date specified in the document appointing the financial institution as successor and in which said institution accepts the appointment, said date being no later than the sixtieth (60th) day after written notice of said appointment has been sent to the holder. On the effective date of the appointment, the Issuer shall transfer the moneys or securities from the account held by said Issuer to its successor. It is, however, understood that the issuer shall never be obliged to redeem the said securities prior to maturity before proceeding with their transfer. Furthermore, the Issuer must provide all necessary information and documents for the management and registration of the account in accordance with the Income Tax Act (Canada) and, if applicable, any provincial income tax legislation. As of the appointment date, the successor shall assume all of the Issuer’s functions and responsibilities, and the latter shall be released from all its obligations and responsibilities hereunder.

The Agent, upon giving the Issuer at least ninety (90) days written notice, may remove the Issuer as the trustee of the account, provided that a successor trustee has been appointed by the Agent in writing.

Similarly, the holder may release the Issuer from its functions and appoint a successor that is qualified in accordance with the terms of the Income Tax Act (Canada) and, if applicable, any provincial income tax legislation. In such a case , the Issuer must, at the latest within thirty (30) days of the holder’s request, transfer all moneys or securities from the account held by said Issuer to its successor. It is, however, understood that the Issuer shall never be obliged to redeem early said securities before proceeding with their transfer.

Section 25. The Issuer may amend this Contract so as to ensure that it always remains compliant with the registration conditions provided in the Income Tax Legislation.

In addition, the Issuer may, from time to time and at its discretion, amend the terms and conditions of this Contract, but agrees to give thirty (30) days’ prior written notice to each holder before said amendment(s) shall take effect.

Section 26. This Contract shall be interpreted in accordance with the laws of the province of residence of the holder and the Income Tax Act (Canada).